IT firm Persistent systems reported a year-on-year (YoY) increase of 17.82% in its consolidated net profit to Rs 439.45 crore in Q3FY26, compared with Rs 372.99 crore in Q3FY25.
Revenue from operations stood at Rs 3,778.2 crore, up 23.28% from Rs 3,062.28 crore reported in Q3FY25.
On a sequential basis, profit declined 6.79% from Rs 471.47 crore reported in Q2FY26. Revenue, however, increased quarter-on-quarter from Rs 3,580.72 crore in Q2FY26.
Key highlights from Persistent’s Q3FY26
#1. One-time labour code hit tempers Q3 earnings
The company noted in its Q3 release numbers include a one-time exceptional charge of Rs 89.02 crore due to the statutory impact of the new labour codes introduced by the government.
“We delivered sustained performance, achieving our 23rd sequential quarter of revenue growth with 4.0% quarter-on-quarter and 17.3% year-on-year growth. This was accompanied by an EBIT margin of 16.7%, excluding a one-time impact of approximately 2.3% arising from the New Labour Codes.”
#2. Rs 22 interim dividend announced
Persistent has approved the payment of an Interim Dividend of Rs 22 per Share with a face value of of Rs 5 each for FY26. The record date for the interim dividend has been fixed as January 27 and will be paid within 30 days of its declaration.
#3. EBIT margins steady despite one-time labour code impact
EBIT excluding the one-time impact of new labour codes came in at Rs 631.78 crore, with an EBIT margin of 16.7%, showing 8.2% QoQ and 38.6% YoY growth. Including the labour code impact, EBIT stood at Rs 542.75 crore.
The company noted a one-time impact of around 2.3% on EBIT and 1.8% on PAT due to new labour codes in Q3FY26.
#4. Rs 22 interim dividend announced
Order booking during the quarter stood at $674.5 million in total contract value (TCV) and $501.9 million in annual contract value (ACV). Wins spanned software and hi-tech, BFSI, and healthcare and life sciences, including AI-led digital commerce, cloud-native ERP migration, data-driven customer experience platforms, cybersecurity, and large-scale cloud and automation transformations.
#5. Company clears 1.1 million equity shares for ESOPs
The board has approved the issuance of 1.1 million equity shares of Rs 5 each to the PSPL ESOP Management Trust. These shares will be allotted in one or more tranches based on employee stock option exercises.
Persistent systems share price
The share price of Persistent Systems closed at Rs 6335.50, down 1.56% from its previous close. However, the stock has gained 9.76% in past six months and 8.43% in last six months.